South Korea’s biggest crypto exchange raided by authorities

South Korean prosecutors have raided the offices of cryptocurrency exchange Upbit.

They have secured the firm’s accounts and records from its computer systems. Prosecutors are investigating whether the company defrauded customers by claiming it had cryptocurrency and electronic wallets that it didn’t have.

In a statement posted on its homepage, Upbit confirmed it was being investigated by prosecutors and was cooperating with authorities. The exchange stressed that all customer services were available and their accounts safe.

Kakao, South Korea’s largest chat app firm, is estimated to own over 20 percent in shares of Dunamu.

The cyrptocurrency firm named Lee Sir-goo its CEO last year in December. Lee was one of the original members of Kakao when it launches its services in 2011 and at one time its co-CEO.

Upbit launched last year in October. By December, it said it had 1.2 million subscribers, one million average daily users and an average daily transaction of 5 trillion won (around US$4.8 billion).